How to Determine Domicile and Order of Priority for Claim on Motor Vehicle Accidents
One of the first major steps when filing a claim under the Michigan No-Fault Act is to determine whether the individuals injured in the crash are entitled to benefits from their insurance company. MCL 500.3114 provides the general rule that a person who is injured while they are an occupant of a motor vehicle should first make a claim for Michigan No-Fault benefits with the auto insurance company on whose policy they are listed as a named insured. However, what should somebody involved in a motor vehicle accident do if they do not have auto insurance themselves?
The general order of priority for occupants of a private motor vehicle involved in motor vehicle accident begins with the insurance company of the injured occupant, this is known as the first order of priority. If the injured occupant does not have insurance of their own, the second order of priority is the insurer of the injured occupant’s spouse or relative with whom he/she is “domiciled.” If you live with a spouse or relative who has motor vehicle insurance, you may be entitled to benefits under their policy. Finally, if neither your spouse or relative living in your home has motor vehicle insurance, the third and final level of priority is the Michigan Assigned Claims Plan. The Michigan Assigned Claims Plan is a state plan that provides no-fault personal injury protection benefits coverage to motor vehicle accident victims who otherwise would not have coverage.
What it means to be “domiciled” with your spouse or relative was addressed in the case of Grange Ins v. Lawrence, 494 Mich. 475 (2013). In that case, the Michigan Supreme Court ruled that a Michigan resident can only have one domicile for purposes of priority. The Michigan Court of Appeals in Workman v Auto Owners, 123 Mich. App 675 (1983) provided certain factors to consider to determine where a person is “domiciled.” Factors include: the stated intent of the claimant to remain at the residence permanently or for an indefinite time; the formality of the living arrangement; or, the existence of other housing. These factors are not exhaustive.
Overall, analyzing the order of priority for no-fault benefits and the term “domiciled” require very careful analysis. The analysis is very fact specific. It may be best to consult with a legal professional who regularly practices Michigan no-fault litigation to obtain the correct answers.
About Alexander & Angelas, P.C.
Alexander & Angelas, P.C. represents defendants in civil liability litigation across Michigan and Northern Ohio. The firm’s practice areas include insurance defense litigation, premises liability, motor carrier (trucking) defense, corporate and commercial litigation, construction defect litigation, auto negligence, insurance coverage disputes, emergency casualty response services, alternative dispute resolution, subrogation claims, workers’ compensation, employment law, and liquor liability.
Attorneys practice in all state and federal courts in Michigan, including Wayne County (Detroit), Macomb County (Mount Clemens), Oakland County (Pontiac), Washtenaw County (Ann Arbor), and Genesee County (Flint). Legal services are also provided in Northern Ohio. Since its founding in 1992, the firm has litigated over 4,000 civil cases.
A 24/7 Emergency Hotline is available (800-219-0007) for trucking and insurance company clients. When an accident requires an immediate response to protect evidence, members of the firm quickly launch an investigation with the assistance of well-qualified accident investigators, crash re-constructionists, mechanical engineers, civil evidence photographers, and independent adjusters positioned throughout Michigan and Northern Ohio.
Alexander & Angelas, P.C. measures its performance based upon three key metrics: aging of claims, indemnity expense, and legal defense costs. The firm refuses to over-litigate cases merely to increase legal fees and strives to resolve matters within one year from initial case assignment.
Image by DC Studio on Freepik